Monday, October 29, 2012

Is DentalSmart designed to attract foreign investors?

There is a chain of clinics in South Carolina, called DentalSmart. It appears they are set up to attract foreign investors through, what is called an EB-5 Immigrant Investor program. (see bottom of post) I say this because it has entities set up described as EB5 Investment companies. Of course I could always be wrong.

EB-5 investors can invest as an individual or through Regional Centers. Normally the investment must be at least $1M unless it’s in a business with high unemployment or rural area, then it’s only $500K.

Commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to:

A sole proprietorship

Partnership (whether limited or general)

Holding company

Joint venture

Corporation

Business trust or other entity, which may be publicly or privately owned

This definition includes a commercial enterprise consisting of a holding company and its wholly owned subsidiaries, provided that each such subsidiary is engaged in a for-profit activity formed for the ongoing conduct of a lawful business.

Note: This definition does not include noncommercial activity such as owning and operating a personal residence.

Create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years (or under certain circumstances, within a reasonable time after the two-year period) of the immigrant investor’s admission to the United States as a Conditional Permanent Resident.

Create or preserve either direct or indirect jobs:

Direct jobs are actual identifiable jobs for qualified employees located within the commercial enterprise into which the EB-5 investor has directly invested his or her capital.

Indirect jobs are those jobs shown to have been created collaterally or as a result of capital invested in a commercial enterprise affiliated with a regional center by an EB-5 investor. A foreign investor may only use the indirect job calculation if affiliated with a regional center.